Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether an adult child working from their parents' home can claim the deduction for home office expenses using the temporary flat rate method?
Position: Yes, if they pay or contribute towards the payment of eligible home office expenses and meet the eligibility criteria.
Reasons: Criteria for the temporary flat rate method
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Dear XXXXXXXXXX:
The Honourable Diane Lebouthillier, Minister of National Revenue, received your correspondence of February 19, 2021, regarding the deduction for home office expenses for the 2020 tax year. She has asked me to reply on her behalf.
You ask about whether your adult child who lived in your home, worked from home in 2020 due to the COVID-19 pandemic, and contributed to household expenses can claim a deduction for the 2020 tax year.
The past year was filled with unprecedented challenges due to the COVID-19 pandemic. Many Canadians unexpectedly had to work from home in 2020 and set up their work space in their kitchens, bedrooms, and living rooms.
In response, the Canada Revenue Agency introduced the new temporary flat-rate method that allows eligible employees to claim a deduction of $2 for each day they worked at home in 2020 due to the pandemic, up to a maximum of $400. Eligible employees who use this new method are not required to keep documents to support the eligible expenses they paid and do not have to get Form T2200, Declaration of Conditions of Employment, or Form T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19, completed and signed by their employer.
An adult child who worked from home more than 50% of the time for a period of at least four consecutive weeks in 2020 due to the pandemic and paid or contributed towards the payment of eligible home office expenses while working from home can claim a deduction for home office expenses using the temporary flat-rate method, as long as their employer did not reimburse them for all of the home office expenses they paid.
I trust the information I have provided is helpful.
Sincerely,
Geoff Trueman
Assistant Commissioner
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency
Tom Baltkois
905-721-5198
2021-088291
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